Summary sheet
The project covers the promoter's Research, Development and Innovation (RDI) activities in the field of electrification technologies for agricultural machinery, power transmission systems for tractors and off-highway vehicles, as well as material science. It also includes investments for product and processes digitalisation, deployment of digital infrastructure and enhancement of cyber security. The RDI activities will be carried out in Italy over the period 2023-2026.
The project will improve the promoter's offer in the field of electrified solutions for agricultural machinery and power transmission systems for tractors and off-highway vehicles. It will also boost the offer of new digital services. The digitalisation activities aim at improving the overall company efficiency and improve its cyber resilience.
The project will contribute to develop advanced technology solutions for agricultural, construction and commercial vehicles driveline electrification to improve the performances and energy efficiency and reduce the manufacturing costs and final price of electrified vehicles and therefore lower the barriers for their wider adoption in the market. Part of the project will also allow deploying transformative digitalisation technologies.
The project will help to further the sustainability and decarbonisation of such industrial sectors in the longer term, lead to important environmental externalities through the market deployment of these technologies and contribute to further knowledge creation, accumulation and diffusion and the development of a relevant ecosystem of technology companies.
The Promoter's investments contribute to the Bank's "Innovation, Digital and Human Capital" Public Policy Goal and, a part of it contributes to EIB Climate Action and Environmental Sustainability (CA&ES) policy objective.
EIB financing supports the Promoter's investments addressing the market failures and gaps associated with imperfect competition and limited investments in the field of very innovative and still market-entry stage technologies and those addressed by projects with positive knowledge and environmental externalities generation.
This project will help the Promoter to support the progressive decarbonisation and transformation of the agricultural and construction equipment and commercial vehicle industries and will help the Promoter consolidating its market and competitive positioning, and achieving its medium-long term strategic objectives and profitability targets.
The project will add to the social welfare and bring about social benefits, by generating environmental and knowledge positive externalities.
The Promoter's R&D capability and well-structured organisation will help implement a sound and sustainable project, integrating positive environmental and social dimensions, contribute to address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.
The proposed operation satisfactorily meets the required funding needs of the promoter as it provides for additional flexibility in terms of availability period, longer tenor and lower cost of funding. The EIB funding is expected to improve the promoter's financial profile by further diversifying its funding base reducing the cost of the debt as well as better spreading the debt maturity profile.
RDI activities in the field of agricultural machinery and power transmission systems for tractors and off-highway vehicles as well as the other activities comprised in the proposed project are not listed in the annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. Therefore the project is not covered by the EIA Directive. The Bank's Services will however review the environmental aspects of the project during the due diligence process.
The promoter has been assessed by EIB as being a private company not operating in the utilities sector and not having a status of a contracting entity, thus not being subject to EU rules on public procurement. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.
CARRARO FINANCE SA as borrower